Harry Banes

Update on GBP/USD Idea

2007-06-22T14:13:40Z

Here's an update on the GBP/USD idea from below. It closed at breakeven.

More ideas to come next week, and an announcement -- this blog is moving to FXStreet.com and it's going to be updated with S/R trades on a daily basis. I know this brings an unimaginable amount of excitement to you.

GBPUSD S/R Trade Idea

2007-06-20T18:58:52Z

The CAD/JPY idea from the previous post is still hanging on. Here's the next:

The GBP/USD is hitting a longer-term level of resistance. Do you see on the 4 hour chart below (click on it for a larger version), how the pair broke and closed above the blue trendline (at the blue square)? And then fell back at the red square, and produced what I call a Winnipeg entry?

That entry came when the pair fell back to the same line that it had broken out from. That pullback, or Winnipeg, move, is for me the real start of the breakout. It just wants to go back home one more time before it heads up.

It headed up to the red dashed resistance level (which is based on historical support and resistance). Then it fell and hit the blue trendline all over again. Now it's hitting the red dashed S/R line all over again. It it can print a reversal candle (a doji, a pregnant fairy, a morning breakfast star, an evening angry boss, that kind of thing) then I am going to sell the pair and hold on for a pullback to 1.9900, then move the stop to breakeven.

Then the profit target will be 1.9850, which is the approximate high of the candle that broke above the blue trendline in the first place. The stop loss will be 1.9975, which is above the high from the last time it hit (and barely went above) the resistance area.

CADJPY Trade Idea

2007-06-18T21:43:22Z

Hey! The CAD/JPY broke the support we were waiting for. The blue squared area shows this break.

The pink trendline is our profit target -- remember that the line-chart might not show a touch of this line, but the candles or bars will (I'll keep you updated on that). If you missed the trade, a break of the dashed green trendline is a second chance entry.

USD/CAD Trade Idea

2007-05-24T02:44:31Z

Here's a new trade idea for the USD/CAD. It will eventually correct. And I think soon.

This is the daily chart. You can click on either of these images to make them bigger.

That dashed trendline is going to be our profit target. But what about the entry? I like an entry on a close above the 4 Hour chart trendline:

We lost the last entry

2007-05-16T16:35:12Z

We lost the last entry. We will post a new entry soon.

EURUSD Trade Idea - 1 hour

2007-03-29T23:53:45Z

A break above the green dashed line should carry the EURUSD to the 1.3400 mark. A break below the blue trendline should carry the pair to the red dashed level at 1.3260.

Remember, you're the master of your own trading fate. Do your planning. Manage your risk. Keep your account. Never get a margin call.

GBPUSD Trade Idea

2007-03-29T23:41:31Z

It's time for another trade idea. I am particularly interested in a buy trade -- for at least 30 pips and as many as 50 -- if the pair falls and hits the 1.9200 mark. A 50 pip stop should be adequate. Here's the chart.

Remember all that business about you being responsible for your own trades. Never risk more than 1% on any single trade.

USD/CAD Short Profits

2007-03-08T01:34:33Z

The chart above shows that the USD/CAD rose to 1.1800 and almost immediately pulled backwards to 1.1730. That was easily enough of a pullback to give us 30 pips. I hope that you got a chance to take the trade.

USD/CAD Short at 1.1800

2007-02-19T18:34:37Z

Here's another Harry Banes trade idea.

This is a weekly USD/CAD chart. Look how 1.1800 has offered resistance and support in the past. If the pair goes back to that level (and I believe it will), then it could be a nice short trade opportunity for 30 pips. We'll keep an eye on this one.

Remember that you are responsible for your own trades. Nothing in this post should be construed to be trading advice or financial counseling. I can't tell you to buy CADs, USDs, blueberries or kittens. You gotta advise yourself.

USD/JPY Profit Target Reached

2007-02-19T18:30:57Z

Our profit target was reached on the USD/JPY trade.

In the next post I'll start a new trade idea.

Update on USD/JPY Trade

2007-02-15T03:47:12Z

In the previous post below, I talked about a Harry Banes trade on the USD/JPY. Look at that chart to see what the plan was.

Look at the chart directly below here to find out what happened.

I am happy with the way it's turned out so far.

A S/R Idea on the USD/JPY

2007-02-13T19:37:33Z

Here's a short term support and resistance trade idea from a long term chart:

Essentially, what I am looking for is a 20 pip bounce off of either of the lines on this chart. If the pair rises up to 122.10-122.20, we should see a fall back lower to about 122.00 or 121.90. And if the pair falls lower to 120.00 (and even to 119.90) we should see a jump back up to about 120.25.

This strategy is similar to what (or Harry) talks about in the book. It simply uses a long term stronghold support or resistance level to create a short term trading opportunity.

Remember that you always must do your own testing before you trade. That you should never risk more than 1% or less on any single trade. And that this post is intended as educational material, not as specific trade advice about buying or selling currencies, commodities, stuffed animals, factory equipment, milk, or any other person, place or thing.

Can You Will Yourself Pips?

2007-02-09T02:46:21Z

Tonight some of us got together and watched the movie "The Secret," which is a feel-good DVD about "how to get what you want in life." The basic premise is that you attract to yourself whatever it is that you think about. And if you think long and hard enough about obtaining something, that you will get it. The message of the movie is well intended, and the creators certainly have a persuasive (and long) argument to make. But I started to wonder:

1. Does willful, purposeful thinking truly make any difference at all? Do you believe that you become a super-profitable trader by imaging yourself being a great trader? Isn't it possible that willful goal setting like this, if it is out of sync with one's true nature or "calling" or "purpose" -- will only result in failure?

Could it be more important to "want what the market wants," as Bill Williams writes? Might it be harmful to attempt to impose upon the market an expectation? Haven't we all met a trader who "decides that today is the day that I am going to change and be a great trader," and then sets out to do the most damage to his trading account? It occurred to me today that placing expectations on the market can be a dangerous habit. It leads to overtrading, poor money management, and huge swings in our emotions while trading.

2. Is it possible that when we let go of attachment to a specific amount of money that we "have to" make from trading, that we can finally find a way to achieve success as a trader? I am not sure I feel comfortable telling traders that pasting a $100,000 bill on the ceiling and obsessing about it will help them achieve wealth. And I question the wisdom in just telling people that if they imagine themselves being successful that it will happen. In the same way that I would not feel comfortable telling a teenage boy that if he simply thinks about the cheerleader all day, and posts a photo of her above his bed, that he will finally be able to obtain her affection.

3. I think it's possible that we can spend a great deal of time trying to achieve something noble (like making lots of money as a trader), but if we don't truly believe we deserve it, or if we are fighting the current (i.e., swimming upstream) that we probably aren't going to get what we think we want anyway. Thinking we know what we really want might could be the greatest obstacle on the path to happiness.

How does this, in the end, apply to trading? I have seen time and time again that traders do better when they finally let go of the need to look good in front of others, or to prove that they can be right all the time about their trading decisions. I have seen great progress made by new traders who realize they are not getting paid as traders to be right, but rather to make money (there is some great discussion about this in the book Inside the House of Money). When they make these realizations, they are willing to cut off their losses, or close out their bonehead trades. And they are excited about adding to their winners and capitalizing on their good decisions.

A wise new trader said to me last week: "I am not going to set a profit goal per day or per week. I am going to take the opportunities that the market gives me, and I am not going to limit myself by what I think the market can present. I am not going to place unrealistic expectations ahead of time on the market. I am simply going to implement a program of trading setups that have a historic probability of working out."

The Book is Out

2007-02-09T02:44:22Z

Adventures of a Currency Trader is out, and you can get it by clicking here.